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“For the second year in a row, Alcoa has achieved company all-time records in revenues, income from continuing operations and cash generation,” said Alain Belda, Alcoa chairman and chief executive officer. “We battled substantially higher material input and energy costs, and currency impacts while simultaneously continuing to execute on the largest capital investment program in our history. We have invested in new plants, expanded production at others, modernized operations, renegotiated long-term power agreements, and built new energy facilities to extend our energy access at competitive rates, while also continuing to invest in growth markets such as Brazil, China and Russia.
“These actions, combined with portfolio and cash flow management, our share repurchase program, conservative leverage, and our commitment to sustainability, delivered results now and will continue to generate quality profitable growth for decades.”
Fourth quarter income from continuing operations was $624 million, or $0.74 per share. Included in the results are a favorable restructuring adjustment and a tax benefit totaling $323 million, or $0.38, almost all of which stems from the recent agreement to sell the packaging and consumer businesses. Income from continuing operations in the 2006 fourth quarter was $258 million, or $0.29, and $558 million, or $0.64, in the third quarter of 2007.
Net income for the fourth quarter 2007 was $632 million, or $0.75, which includes the restructuring adjustment and the benefit from the agreement to sell the packaging and consumer business. Net income for the fourth quarter of 2006 was $359 million, or $0.41, and $555 million, or $0.63, in the 2007 third quarter.
Revenues for the 2007 fourth quarter were $7.4 billion, compared to $7.8 billion a year ago, as a result of lower LME prices and the exclusion of results from the soft alloy extrusion business, which is now part of a joint venture. The soft alloy extrusion business had revenues of approximately $560 million in the fourth quarter of 2006.
After-tax operating income for the alumina segment was $205 million, a decrease of $10 million, or 5%, from the prior quarter. System production increased by a net of 80 kmt as Suralco, San Ciprian and Pinjarra set quarterly production records and Jamalco continued its recovery from Hurricane Dean. However, higher freight and energy costs and unfavorable currency offset production gains.
Additional details are available at www.alcoa.com.